The federal gift tax is a tax on the transfer of property from one individual (the donor) to another (the donee) when the donor receives nothing—or less than full value—in return. The tax applies whether the donor intends the transfer to be a gift or not.

The gift tax applies to the transfer of a gift of any type of property. You make a gift if you give property (including money) or the use of or income from property without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift.

For additional information, see Internal Revenue Service (IRS) Form 709 and its instructions.

The federal gift tax is applicable to all individuals in the United States, including those residing in Mississippi (MS). It is imposed on the transfer of property by one person (the donor) to another (the donee) without adequate consideration in return. This tax is not specific to any state law but is a federal matter, governed by the Internal Revenue Code (IRC) and regulated by the Internal Revenue Service (IRS). In Mississippi, as in all states, residents must adhere to these federal regulations. The gift tax encompasses any type of property, including money, real estate, or other assets. If a person sells an item for less than its fair market value or extends a loan without interest or at a below-market interest rate, this can also be considered a gift for tax purposes. Each individual has an annual gift tax exclusion amount, beyond which the gift must be reported to the IRS using Form 709. It's important to note that there are lifetime exemptions and other nuances to the gift tax rules, so consulting with an attorney or tax specialist is advisable for specific situations.